DoubleDown confirms $18 share price for looming IPO

| By Nosa Omoigui
Double Down, a subsidiary of DoubleU games, has confirmed the pricing of its initial public offering on the Nasdaq stock exchange in the US at $18 per American depository share.

6,316,000 American Depositary Shares (ADS, each made up of 20 common shares) are on offer, with each ADS representing 0.05 common share at a price of $18.00 per share.

The company had initially estimated its price range at between $18-$20 per ADS, with the aim of raising up to $126.3m.

DoubleDown plan to sell 5,263,000 ADS’ with a further 1,053,000 provided by selling shareholders. This will result in gross proceeds of $113.7m.

As previously disclosed, funds from the IPO will be used for general corporate purposes but may also be required to pay legal costs. While it did not provide details of these legal costs, in July, the operator issued a press release to quash media reports that some DoubleDown executives had illegally sold shares, arguing the claims were “groundless”. In addition, the operator has faced class-action lawsuits in the US.

The ADS will appear on the Nasdaq Global Select Market under the ticker symbol DDI, with the offering closing on 2 September.

The IPO had been in the works for DoubleDown for some time, with plans first being announced in June 2020. However the uncertainty created by the novel coronavirus (Covid-19) pandemic meant that the company put proceedings on hold.

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